Cost accounting – the new legal reality – Thomson Reuters ForeFront

Peter Zver talks to Thomson Reuters Forefront about ‘cost accounting – the new reality in the legal industry’.

Let’s face it. Back in the day, there was an easy fix for shrinking revenues. When a firm saw its profitability slipping, it could push the billing rate up a little bit. This made all the difference. It was a great solution for firms: it meant they could maintain profitability through thick and thin. And once top-tier firms made the “rate” move, others soon followed.

Well that was then. Then a bad thing happened. You’ll recall that in 2008 an enormous credit bubble burst and triggered a huge economic downturn.

In its wake, we’ve all seen that the majority of law firm clients have become considerably more cost conscious.